THE EFFECT OF FIRM CHARACTERISTICS TO PROFITABILITY OF FOOD AND BEVERAGES COMPANIES LISTED IN INDONESIA STOCK EXCHANGE
Based on the data from Badan Pusat Statistik (BPS) the growth of Gross Domestic Indonesia (GDP) decreased since the third quarter of 2018 and this condition became worse because of the coronavirus pandemic situation. It was decreased from 4,97 percent in the fourth quarter of 2019 became 2,97 percen...
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| Format: | Theses |
| Language: | Indonesia |
| Online Access: | https://digilib.itb.ac.id/gdl/view/49258 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | Based on the data from Badan Pusat Statistik (BPS) the growth of Gross Domestic Indonesia (GDP) decreased since the third quarter of 2018 and this condition became worse because of the coronavirus pandemic situation. It was decreased from 4,97 percent in the fourth quarter of 2019 became 2,97 percent in the first quarter of 2020 and the inflation rate for food and beverage is only 0,18 percent. Food and beverages industry growth increase from year to year in line with the increasing demand for food and beverages. It is related to the fact of life that all living things need food and beverages to survive.
This research aims to analyze, examine, measure, and find empirical evidence about the effect of firm characteristics proxied by firm age, firm size, liquidity, and leverage to the profitability proxied by return on sales. Population of this research is all companies listed in Indonesia Stock Exchange (IDX). Based on the purposive sampling method used in this research, there are 12 companies listed in Indonesia Stock Exchange (IDX) from the consumer goods sector with the food and beverages sub-sector. This research used secondary data collected was analyzed using descriptive statistics, Microsoft Excel, and SPSS software 25 version. This research employed multiple linear regression analysis to observe the correlation and effect of dependent and independent variables. The researcher found all of the hypotheses of this research study accepted and conclude that firm age, firm size, liquidity, and leverage have a significant and positive effect on profitability. The company should maintain its assets, debt funds, and all resources effectively and efficiently by using experiences and knowledge combined with skills and capabilities to generate more profits. Future researchers expected to analyze the other variables that may affect to the profitability but not included as variables analyzed in this research study and expand the sample to describe the demographic condition of companies in Indonesia more clearly. |
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